ERP Glossary - S: Shop Calender to Strategic Advantage

Shop Calendar

Shop calendar is the expected work schedule of the factory, and is useful in calculating dates when the time elapsed is in business days. The shop calendar will also prohibit invalid dates being placed on sales or purchase orders, and will be used in calculating work center capacity.

Shop Floor Management

The supervisory leadership on the production floor of a manufacturing operation. In an ERP operation, shop floor management is ultimately responsible for ensuring the accuracy and compliance of all inventory movement, production reporting, and quality assurance transactions.

Six Sigma

Six sigma, in manufacturing, normally refers to the set of problem solving and process tools and strategies that are aimed at reducing defects and improving quality. The name is borrowed from statistics, and is a measurement of the expected out-of-standard production for a process capable controlling variation to within six sigma of spec limits: 3.4 parts out of a million would be out of spec.

SKU (Stock Keeping Unit)

An SKU, or stock keeping unit, is a unique identifier for a purchased or manufactured product which is differentiated in some way from every other purchased or manufactured product. An sku is generally the specific thing that is bought or sold in a commercial sales transaction.

Software Development

Software development is the creation of computer code to create software applications, or the creation of enhanced computer code and additional computer code to make an existing software application contain easier or more robust functionality.

Software License

A software license is means of allowing multiple people to utilize the same shared software application, by having each individual pay a fee for a license. This allows software vendors to collect revenue as if they were selling multiple stand alone packages, and allows the using business to enjoy the benefits of a shared system.


The ubiquitous term applied to all collections of computer code, or computer programs, that make a computer perform a function. Software might refer to an operating system on a PC, an application that runs on top of an operating system, or an ERP system that contains the simultaneous interaction of hundreds of software programs.

SOW (Statement of Work)

A statement of work is a formal document specifying the amount, type, and timing of work to be performed by a vendor, and the expected outcome of the work, often referred to as a "deliverable". An SOW is a binding legal agreement, and would definitely be referenced in the event of a business dispute or litigation.


Stakeholder is a term used in change management, and refers to someone who will be positively or negatively affected by change. For ERP implementations, the term "stakeholders" tries to capture the nuance that this group is typically involved early in the design and direction of the blueprint, and has a vested interest in making sure that the ERP solution is robust and effective.


Synchronizing is a process that occurs at an ERP implementation go-live, where 100% of the business conditions - existing customer orders, existing production work orders, existing inventories, existing purchase orders, existing accounts receivable, etc. - at shutdown must be accurately captured and recreated - manually or with the assistance of load programs. The normal period of time to complete and verify this task before the start of business at go-live is usually a 48 hour- to 72 hour window.

Strategic Advantage

Strategic advantage is the business reason that your organization wins in the market place. Strategic advantage might be being located close by a customer, having a superior product design or performance, or protected intellectual property that the market desires.

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Richard Barker

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Richard Barker

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